Get these elements together and then visit a lawyer and ask them to go over it with you, ask them to add anything they feel is necessary.

If you have trouble getting a client to sign then you could tell them that it protects them as much as it protects you. That you are BOTH legally bound to abide by the contract.

If a client refuses to sign a contract, then they are not a client you want to have when the going gets tough.

Please find enclosed one of my businesses contracts, you are welcome to use this for your own use but you will have to personalize it for your business. I recommend seeking legal advice on your contracts contents.

If you download my contract please let me know if it is useful or drop a thankyou at the end of this thread

You are absolutely right 'bout the necessity of a contract before taking up a job.
Many a times, clients give me a weird look when I ask them for an advance deposit and sign a work order before I actually get started. Dunno why people expect a designer to first prove herself by doin' their job on speculation before they finally agree to bind themselves by a signed contract.
And I hv come across a lot of clients who do not agree to pay the advance amt. Instead stress on the completion of a job and only after being "fully" satisfied, will make the lumpsum payment. Dunno how to tackle this scenario

This clause would sort out those troublesome clients ArtyCreations, don't take on any jobs without a signed contract, you don't want the clients who refuse, believe me:

24. Payment Terms / Work Flow

A minimum deposit of one third (33%) of the total amount is required to commence work.

Once the first deposit is received by the Developer, basic site design concepts will be put online for the Client's viewing and approval.

Communication between the Developer and the Client is crucial during this phase to ensure that the ultimate publication will match the Client's taste and needs.

Upon completion of this stage, the Client will be asked to confirm acceptance for the basic site design via e-mail or by signing a printed copy of the design. Once this acceptance is received from the Client, the work necessary to complete the project will begin, and the second third (33%) of the total amount will be paid.

Clients should continue, however, to continually view updates to the site and express their preferences or dislikes to the Developer. Upon completion of the web site, an e-mail or letter and invoice will be sent to the Client advising the Client that the work has been completed. Final payment of the remaining 33% balance plus any additional charges incurred will due within fifteen (15) business days after delivery of this e-mail or letter and invoice.
If the fifteen (15) day minimum is not met an additional charge of 10% is due. If payment is not made within thirty (30) days of notification, simple interest will accrue on the balance owed at a rate of 18% from the date the 10% penalty was levied.
Developer reserves the right to remove all web content from the Internet if payment is not made within ten (30) days after delivery of our completion notification. Most frequently, problems making payment timely are the result of poor communication channels in a company's Accounting Department. If a payment delay is anticipated, please contact the Developer to discuss potential problems in advance. If problems are anticipated we may be able to accommodate an alternate arrangement.

I found most of it online searching through web design contracts, edited it to suit my business then took it to my lawyer for him to check it's validity, $500 and two weeks later I was covered

In offering this article I just hope everyone follows the advice and does not get ripped off. Plus I hope I can help struggling or beginning designers out by offering them my contract for free download.